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Gold Trend 12/04

Gold broke out from the critical resistance 1950 yesterday. The day began at 1947. The price has consolidated toward the day-low 1939 early in the Asian session until buying started while the trading was entering the European session. The price has climbed to the day -high 1969 after it crosses the 1950 (1) resistance—the day ending at 1952, up by USD6.

The breakout of 1950(1) triggered a fresh round of buying yesterday, leading the price to the previous high of 1965. However, the profit-taking was quite strong above 1965, and the price quickly slid back to the support level of 1941- 43(3), a sign that the buying wasn't too strong. The upward support line(2) is still in effect but slightly shifted to trendline(2.1). Expect the price to trade between the triangular pattern(4) before the US session. The US CPI figures will hold the key to the trend in the next 48 hours.

Gold broke the critical resistance of 1950 yesterday, but the buying wasn't strong enough to pull the price away from 1950, with the day merely ending at 1953. The rejection from 1970 and pullback before the day-end has created a sign of reversal . If the daiy price can close below 1953 today, we can expect the price to visit again 1920 or even lower in the next 2-3 days.

S-T Resistances:
1974
1965-68
1960

Market price: 1956

S-T Supports:
1950
1941-40
1930


Risk Disclosure: Gold Bullion/Silver ("Bullion") trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article. 


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